SOURCE: Xcite Energy Ltd

November 17, 2014 02:00 ET

Xcite Energy Limited Memorandum of Understanding With China Oilfield Services Limited

ABERDEENSHIRE, UNITED KINGDOM--(Marketwired - Nov 17, 2014) - Xcite Energy Limited (TSX VENTURE: XEL) (LSE: XEL) (AIM: XEL)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

TSX-V, LSE-AIM: XEL

17 November 2014

Xcite Energy Limited
("Xcite Energy" or the "Company")

Memorandum of Understanding with China Oilfield Services Limited

Xcite Energy announces that its 100% subsidiary, Xcite Energy Resources plc ("XER"), has entered into a Memorandum of Understanding ("MOU") with China Oilfield Services Limited ("COSL"), which sets out the principles for the provision of a new-build Keppel FELS N Class Plus, harsh environment jack-up drilling rig, together with equipment and personnel for the Bentley field. Final specifications of the rig are currently being agreed in order for construction to begin at the Keppel FELS yard in Singapore.

COSL will work in a collaborative manner with all the key stakeholders to develop innovative, field specific rig and drilling services for Bentley, to maximise the economic recovery from the field and the economic return for all stakeholders.

Rupert Cole, CEO of Xcite Energy, commented:

"We are very pleased that COSL has joined the Bentley development team and this marks the last of the key development group roles to be filled. COSL has considerable experience in drilling operations and we believe they possess the skills and expertise to work alongside our other partners in our collaborative and innovative model. Selecting this ultra-high specification drilling rig, and constructing it at the Keppel FELS yard in Singapore, is an important part of securing both the future schedule and drilling efficiency of the Bentley project."

Notes to Editors

China Oilfield Services Limited("COSL") is a global top-tier integrated oilfield service solution provider with nearly 50 years of experience in oilfield operations covering the exploration, development and production phases of the oil and gas industry. COSL provides customers with flexible choices through single business or bundled and turnkey services. Ranked in the top three by IHS Petrodata by total number of drilling rigs, COSL possesses the operational efficiency and QHSE record to ensure high quality services for customers. COSL provides services across China, North Europe, Southeast Asia, Australia, the Middle East and the Americas for many international oil companies. COSL is listed on both Shanghai and the Hong Kong Stock Exchanges and is majority owned by China National Offshore Oil Corporation.

Forward-Looking Statements

Certain statements contained in this announcement constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to the Company's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "target", "potential", "continue" or other similar expressions concerning matters that are not historical facts. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include risks associated with the oil and gas industry (including operational risks in exploration and development and uncertainties of estimates oil and gas potential properties), the risk of commodity price and foreign exchange rate fluctuations and the ability of Xcite Energy to secure financing. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • ENQUIRIES:

    Xcite Energy Limited
    +44 (0)1483 549 063
    Rupert Cole / Andrew Fairclough

    Liberum (Joint Broker and Nominated Adviser)
    +44 (0)203 100 2222
    Clayton Bush

    Morgan Stanley (Joint Broker)
    +44 (0)207 425 8000
    Andrew Foster

    Bell Pottinger
    +44 (0)203 772 2500
    Henry Lerwill